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Issues: Classification of imported goods as consumer goods and requirement of import license.
In this case, the Appellate Tribunal CESTAT, Mumbai dealt with an appeal filed by the Revenue against an order passed by the Commissioner (Appeals) regarding the classification of imported Buttress Heel Nails and Screws under Customs Tariff Heading 73.17. The Customs Authorities contended that the goods required an import license as they were considered consumer goods. The Joint Commissioner of Customs had ordered the confiscation of the goods due to the lack of an import license, with an option for redemption on payment of a fine. The Commissioner (Appeals) accepted the appellant's argument that the goods were raw materials for shoe manufacturing, not consumer goods, as they were high precision fasteners for shoe heels. The Commissioner observed that the goods required further processing for manufacturing shoes and set aside the confiscation order. The Revenue argued that the goods fell under the definition of consumer goods as per Para 3.14 of the policy, which includes goods directly satisfying human needs without further processing. The respondents cited a Tribunal's order where goods exclusively used by industries, like the textile industry, were not considered consumer goods. The respondents presented a catalogue showing the imported nails and screws were specialized items not commonly used by consumers but by shoe-making industries. The Tribunal found no evidence from the Revenue to dispute the Commissioner (Appeals)'s findings that the goods were raw materials for the shoe industry. Consequently, the Tribunal rejected the appeal, upholding the view that the goods were not consumer goods but specialized items for industrial use.
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